Nifty Gaps Up, Consolidates in Narrow Range

NiftyTrader • September 5, 2023

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Index	Price	Change	% Chg
Nifty 50	19,574.90	+46.10	+0.24%
Nifty Bank	44,532.15	–46.15	-0.10%
BSE SENSEX	65,780.26	+152.12	+0.23%

At the close, the Nifty 50 was at 19,574.90 up by 0.24%

In a display of resilience, the Indian stock markets maintained their upward momentum for the third continuous session, driven primarily by mid-smallcap stocks. This bullish sentiment was pervasive across various sectors, fortifying the overall market.

The NSE Nifty 50 index showcased its strength by opening on a high note and closing with a commendable gain of 0.24%. It comfortably held above the 19,550 mark, a testament to the market’s confidence and stability.

Significantly, domestic factors emerged as the key driving force behind the robustness of Indian equities, enabling them to remain steadfast amidst global uncertainties. While international markets grappled with volatility, the Indian markets exhibited a range-bound yet positively biased trend. The absence of trading in the US markets on Monday provided investors with a strategic window for making selective investment decisions.

Nonetheless, it is prudent for market participants to exercise caution, as sharp fluctuations in the rupee’s value have the potential to impact foreign institutional investor (FII) flows in the future. Vigilantly monitoring currency movements and their potential ramifications on market dynamics will be imperative for investors navigating the Indian equity landscape.

Bank Nifty: Down by 0.10%

The Bank Nifty started the session on a positive note but ultimately closed with a minor dip of 0.10%, settling at 44,532.15. In contrast, the BSE Sensex experienced a 0.23% increase, concluding the day in positive territory and reaching a peak of 65,780.26.

Examining sector performance, the Media sector stood out with impressive gains, surging by 3.19%. Two key players in this sector, Dish TV India Ltd. and Nazara Technologies Ltd., posted significant gains of 20.00% and 7.06%, respectively.

Conversely, the Financial Services sector saw a slight decline of 0.17%. Notable underperformers in this sector included ICICI Prudential Life Insurance Company Ltd., which witnessed a decrease of -3.07%, and Rec Ltd., with a loss of -1.35%.

Foreign Institutional Investors (FII/FPI) reported a net sale value of Rs. 1,725.11 crore, with total purchases amounting to Rs. 8,414.44 crore and sales reaching Rs. 10,139.55 crore. On the other hand, Domestic Institutional Investors (DII) recorded a net purchase value of Rs. 1,077.86 crore, with acquisitions totaling Rs. 8,580.69 crore and sales amounting to Rs. 7,502.83 crore.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included IDFC First Bank with a 0.96% increase, Federal Bank with a 0.94% increase, Kotak Bank with a 0.44% increase, Bank of Baroda with a 0.28% increase, and ICICI Bank with a 0.22% increase. On the other hand, the biggest losers in the sector included Bandhan Bank with a 0.72% decline, HDFC Bank with a 0.60% decline, State Bank of India with a 0.45% decline, AU Bank with a 0.24% decline, and Axis Bank with a 0.12% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Indian Rupee Faces Headwinds: Factors Behind Its Recent Depreciation

The Indian rupee (INR) recently experienced a decline, closing at 83.06 (pro) against the US dollar. This depreciation of 35 paise can be attributed to a combination of factors affecting the currency’s performance.

Firstly, the strength of the US dollar played a significant role. A robust American currency, driven by safe-haven demand amid global market risk aversion, exerted downward pressure on the rupee’s value.

Secondly, higher crude oil prices contributed to the rupee’s fall. India’s heavy reliance on oil imports makes it vulnerable to fluctuations in global oil prices, impacting its trade balance and foreign exchange reserves.

Additionally, foreign fund outflows from domestic equity markets further weakened the rupee. Capital outflows can erode the country’s foreign exchange reserves, affecting the rupee’s stability. The rupee’s decline was also influenced by disappointing macroeconomic data, including a drop in India’s services activity index from 62.3 in July to 60.1 in August.

Buzzing

Apollo Hospitals Enterprise Ltd: A Steady Rise in Share Price and Financial Stability

Apollo Hospitals Enterprise Ltd. has demonstrated remarkable performance in the financial markets, with its share price showing a significant increase of 3.22% from its previous closing value of Rs 4,824.85. As of the latest data available, the stock is trading at Rs 4,980.00.

An interesting statistic to note is that over the past 18 years, only 1.53% of trading sessions witnessed intraday declines exceeding 5%. This suggests that Apollo Hospitals Enterprise Ltd. has historically displayed stability and resilience in the face of market fluctuations.

Furthermore, the company’s prudent financial management is evident in its expenditure allocation. Apollo Hospitals Enterprise Ltd. allocated 2.29% of its operating revenues towards interest expenses, indicating a conservative approach to debt management. Additionally, the allocation of 12.9% of operating revenues towards employee costs reflects a commitment to human capital development and employee welfare.

UltraTech Cement Ltd: Share Price Dip, Yet Promising Signs and Robust Growth

UltraTech Cement Ltd. experienced a modest decline of -1.49% in its share price from the previous close of Rs 8,582.55, with the stock currently trading at Rs 8,454.95. While this may raise concerns among investors, it’s important to consider several positive indicators for the company.

A notable development is the weekly stochastic crossover observed in the week ending September 1, 2023. Historical data reveals that, on average, a 7.1% price gain occurred within seven weeks of this signal over the last decade.

UltraTech Cement Ltd.’s financial performance is also commendable. The company achieved an impressive annual revenue growth rate of 20.03%, outpacing its three-year compound annual growth rate (CAGR) of 13.8%. Furthermore, it’s worth noting that over the past 18 years, only 1.64% of trading sessions witnessed intraday gains exceeding 5%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.25, and the market breadth was positive. The volatility index India Vix decreased by 1.34 percent to settle at 10.82 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1329
Decliners – 1059
52Wk High – 222
52Wk Low – 10
High Band Hitters – 105
Low Band Hitters – 22
200d SMA – 18386
50d SMA – 19463
20d SMA – 19421

Top Gainers and Losers Stocks

The top gainers were Apollo Hospitals (+3.22%), Coal India (+3.07%), Sun Pharmaceutical (+2.08%), BPCL (+1.54%), and ITC (+1.52%).

The top losers were UltraTech Cement (-1.49%), Dr. Reddy (-1.40%), SBI Life (-1.31%), Maruti (-1.03%), and Eicher Motors (-0.73%).

Top Gainers and Losers Sector

The top gainers sectors were Media (+3.19%), Pharma (+1.10%), Realty (+1.06%), Oil & Gas (+0.76%), and FMCG (+0.74%).

The top losers sectors were Financial Services (-0.17%) and Auto (-0.01%).

The Nifty Midcap 50 was up by 0.98 percent, while the Nifty Small Cap 50 was up by 0.64 percent on the day.

The Nifty Midcap 50 index currently closed at 11,437.65, while the Nifty Small Cap 50 index currently closed at 5,830.90.

SECTORS – NOTABLE ACTION
MEDIA +3.19%
PHARMA +1.10%
REALTY +1.06%
FINANCIAL SERVICES -0.17%
FMCG -0.01%

Stocks Ban List

(SEBI) F&O ban list (BALRAMCHIN open at +411.00 and close at -404.40), (IBULHSGFIN open at -196.25 and close at -187.65), (BHEL open at +139.70 and close at -138.40), (INDIACEM open at -258.80 and close at -254.85), and (HINDCOPPER open at +172.50 and close at -168.55) are not currently on the stock exchange.

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO ) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.

MANAPPURAM, PNB, and SAIL stocks has the possibilities of enterance in the ban list.